GujRERA Takes Action Against Shivalik Group for Pre-Registration Marketing

A bench of the Gujarat Real Estate Regulatory Authority (GujRERA) has referred a case involving the 32-storey project Shivalik Wave to its secretary for appropriate legal action against the project’s promoters. The referral concerns allegations of marketing and booking units before the project was registered with RERA. The complaint was filed by Devarshi Parikh, a resident of Gandhinagar, against promoters Chitrak Shah and Anil Desai. Parikh alleged that the promoters marketed the project—located at Final Plot No. 106 of TP Scheme No. 63 in Khoraj village near Vaishnodevi Circle—before obtaining RERA registration. He also claimed that he was promised a 1% brokerage fee, amounting to Rs 3.5 crore, for providing details of the 13,500-square-yard plot to the Shivalik Group. However, the amount was never paid. Parikh requested that RERA direct the promoters to pay the brokerage and take action for alleged pre-registration marketing. In response, Shivalik’s representative argued that Parikh is neither an allottee nor a real estate agent but a private individual. Therefore, the complaint regarding unpaid brokerage does not fall under RERA’s jurisdiction, as per Section 31 of the RERA Act, which allows only an “aggrieved person” to file a complaint. RERA framed two key issues. The authority ruled that since Parikh is not an allottee or a registered agent, the matter is a civil dispute and outside its jurisdiction. The other issue pertains to pre-registration marketing. RERA reviewed photographs submitted by Parikh showing promotional material with the Shivalik Group’s name and contact number but lacking a RERA registration number or website. Since the project was not registered at the time of marketing, GUJRERA found this to be a violation and referred the matter to its secretary for further legal action. The Gujarat Real Estate Regulatory Authority (GujRERA) plays a crucial role in ensuring that real estate projects in the state are conducted transparently and ethically. By referring this case for legal action, GujRERA is taking a firm stand against pre-registration marketing, which can mislead potential buyers and violate regulations. This move is expected to set a precedent and deter other developers from engaging in similar practices. For homebuyers, this action reinforces the importance of verifying the RERA registration status of any project before making any financial commitments. It also highlights the need for developers to adhere to regulatory guidelines to maintain the integrity of the real estate market. The Shivalik Wave project, located in a prime area near Vaishnodevi Circle, is now under scrutiny, and the outcome of this case could have broader implications for the real estate sector in Gujarat. In conclusion, the referral of this case by GujRERA to its secretary for legal action underscores the authority's commitment to upholding the standards set by the RERA Act. It serves as a reminder to both developers and buyers to remain vigilant and adhere to regulatory requirements, ensuring a fair and transparent real estate market.